Charitable Lead Trusts
A charitable lead trust can be an effective estate planning tool to transfer the assets to your heirs with significant tax advantages while making a meaningful gift to Chabad of Westwood - Holmby . You can establish a lead trust that will make income payments to the Center for a pre-determined term of years. After the trust term, the assets are distributed to you or your heirs. There are two types of lead trusts: the grantor lead trust and the non-grantor lead trust.

Grantor Lead Trusts
As a grantor lead trust donor, you contribute assets to a trust, which makes payments to Chabad of Westwood - Holmby for the duration of the trust. When the trust terminates, the assets revert to you and/or your spouse. When you establish a grantor lead trust, you are entitled to an immediate income tax charitable deduction equal to the present value of the income stream, Chabad of Westwood - Holmby will receive during the life of the trust.

Non-Grantor Lead Trusts
As a non-grantor lead trust donor, you contribute assets to a trust, which makes payments to the Center for the trust term. When a non-grantor trust terminates, the assets are transferred to someone other than you and/or spouse, usually your children or grandchildren. When you create a non-grantor lead trust, you do not qualify for an income tax charitable deduction, however, you will enjoy a substantial reduction in estate and gift taxes on the future transfer of assets to your heirs.

 

For personal assistance contact: Rabbi Shalom Cunin at [email protected] or call 310-709-1556.

Chabad Westwood is a 501(c)3 non-profit organization. All grants & charitable contributions are tax-deductible.